machine shop rates. - Page 2


View Poll Results: Machine shop rates

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  • -$40

    19 7.14%
  • $40 - $60

    69 25.94%
  • $60 -$80

    95 35.71%
  • $80 - $100

    50 18.80%
  • $100 - $150

    24 9.02%
  • $150 +

    14 5.26%
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Thread: machine shop rates.

  1. #21
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    Magma Joe, sorry you wasted your time crunching those numbers to tell me how broke I am. $40 an hour shop rate is per machine. I have 4 CNCs they never all run at the same time, but quite often 2 or 3 are going at once. I also charge for deburring even if I am doing it while a machine is running, so rarely am I just billing out $40 an hour while working.



  2. #22
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    $40.00 an hour, that's sad but the reallity. I remember our shop was doing well for itself some years ago, back when the dollar still was worth something. We were bringing in roughly $80.00-$100.00 an hour and like I said that was back when the dollar was worth something. There was no competition locally that could compete and everything required us to go to the factory/plant to check the repair/modification/build, so that cut out the 3rd world. Then those plants shut down 1 by 1, leaving us with a few big companies that we've been doing business with for 35+ years. Taxes and power were cheaper, value of the dollar was higher and we were making nearly double of what we make now. Then you have your insurance, which I'm sure most shops on here don't have to worry about. But we were forced awhile back into getting insurance because of some of the operations we do and that is one healthy chunk of money. Especially when work is slow, it's a real pain. No doubt about it things have gone from bad to horrible for the majority of business's.



  3. #23
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    I am curious, out of the $xx per hour a company charges, what the percentage breakdown is that goes to paying things like:
    wages, taxes, electricity, rent, tooling, maintenance, the other 100 things im forgetting.

    Also, if youre charging $xx for labor, how much are you marking up the material?



  4. #24
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    My expenses average 30% of what the job grosses less material costs. Tooling, electricity, machinery repairs, and all perishables add up to 30% average. No rent my shop is paid off. No machine payments either. So if a job nets $1,000 after material, that is $700 added on to my taxable income, then income taxes come out of that. I averaged out quite a few jobs so the 30% expense costs is a good number to use.



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    The Problem outsourcing to china is, first you save some bucks in your product, but second you have the problem, that the chinese factory copies your part and throw it on the market for a price, you don't get only the raw material for.

    I have heard enough stories from big companies, who built a complete manufacturing in China. The boss saw always different people in his building. At a time he followed one of the workers and must see, that few miles away, there is exactly the same building, who produces his products. But for a really low price he can't compete with.



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    Quote Originally Posted by machinechick View Post
    Seems the rates have been the same ($60-$80 per hour) for the past 10 15 years (midwest). The wages for the people that do the actual machining haven't improved much either, and they sure didn't anywhere keep up with inflation.
    Frankly, I don't see how people can stay in business. Out of about 6 shops I worked in only two are still in business and they are very small outfits; the big places that had heavy duty contracts or made their own products are LONG gone! The excuses for the low pay/rates first was the Japanese and Koreans, then Mexico, now it's ALL in China. Kinda funny how the Communists (who protect their economy) turned out to be the only large scale manufacturers left.
    Oh well, c'est la vie, guess I should have been a CEO or something. Never really could figure out what those people that live in those 'burb mansions did for money, (not machining/manufacturing) there sure seems to be an awful lot of them though!
    To answer the thread on this you are correct with the $60-$80 for production time. Prototype is typically dependent upon the quality of the machinist. We would charge $100-$125 depending on which machinist we put on the job.

    And to your communist comment. If you prefer that way of life i'm sure that Puten or Jiabao would love another slave.



  7. #27
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    There is plenty of work in the USA. What is wrong is we have to many small machines..6,8,10,12 in chucks on lathes...under 60" on vertical tables. to many knee mills.
    How many Big CNC HBM's are out there???? is your machine over 6 yrs old???
    Buy some new equipment. Plenty of big work out there...If all you want is small work, do you have a twin-spindle, twin turret turning center with Y axis for milling???
    Sounds to me your afraid to move forward and grow. I am a Machinist/Programmer/Consultant so I have heard all the same excuses. Fear will put you out of business. I just helped a Company buy a New Mori mill/turn with Y axis.. They charge 50 an hour based closely on manual run time. but not one job has made under $120, most hourly rate is over $150 an hour.. So cry all you want about 40-6- an hour. If you don't have the Machines to go after the so called (Gravy Jobs) don't blame other countries. Blame your own fear and get ready to go out of business. Oh and before anyone says ( yeah but those are big orders ) Wrong none at this shop over 20 pcs...So ahead and talk yourself out of being A real business and just keep playing at your hobby.



  8. #28

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    My Rate in my shop in Southern California was $50 per hour and that was cheap for such an expensive area to try and do business. Now I mostly write software for the machinist community. WebMachinist.Net The Ultimate Online Source for Machining Resources

    www.WebMachinist.Net
    The Ultimate Online Source for Machinist Related Stuff!


  9. #29
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    I agree with MattMachinist, spend the money to make the money is what my boss has done here in Australia.
    Here in the remote mining area, where it is expensive just to buy/rent industrial land, but where the mining industry is booming - my boss has made his first CNC purchase a large 5-axis Okuma lathe and his second a 5-axis 2 meter chuck vertical Okuma centre.
    That's over 2.5 million bucks in expense without expecting a return for many years. Find the market & take the risk.
    $40 /hour rates sound impossible, even $120 / hour sounds cheap.
    Find a hole in the industry, invest, and then charge +$600 /hour like we do!



  10. #30
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    Quote Originally Posted by universalfab View Post
    Chinese are thieves, end of story. They got what they got from us, the U.S.A. Before are big business bent our country over and sold us out they were nothing. Thanks to some commie with the dream of destroying this capitalist country world power U.S.A. and leveling the world to worldwide communist russia or china. Then the some few can set high up on their horses with a large wad of cash and the huge majority will lye in their sqauller and poverty. Then we'll all be 3rd world countries. The chinese wanted be just like us and some scum bag american's gave it to them, why would we want to be like them? The U.S.A. the greatest country still no matter how you look at it, we are the LEADERS in INGINUITY. You all should be looking at how to turn this country "U.S.A." back into what the founding fathers intended it to be. If it weren't for the U.S.A. the world would be a descilant place, we donate more money to undeserving 3rd world countries by millions times what any other country does and that's individual private donations. Not including the money that is stollen right out of your taxes that are supposed to be for OUR COUNTRY that is squandered away to some 3rd world heathen. Take care of your own, this is GOD's land. The rest of the world should not be your concern, always put YOUR PRIORITIES "which should always be your own country" FIRST. Think of all the money that could be invested into to U.S.A. private business's if people didn't donate all that money to the 3rd world, TRILLIONS OF DOLLARS, let alone all the money stollen from you and I out of our taxes squandered on 3rd world countries. 3rd world does nothing for any American, none, all they do is take, take, and take some more. They take just as much from us as they hate us. You think they would do anything for you if you were sick and hungry, hah, you'd die, they'd rather you die anyway. So whys it so hard for us to do the same, I guess there's just to many big commie pu$$ies over here in the U.S.A. People better pull their heads deep out of their butts because their sky will fall right down on their face. Put God first and then this great country will rise back up to what it once was I believe.

    If ye love wealth better than Liberty, the tranquillity of servitude than the animated contest of Freedom, go from us in Peace. We ask not your counsel or Arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that you were our countrymen. --Samuel Adams
    I liked this so much I had to share most of it on my facebook wall. Unfortunately I had to cut out the chinese part as we have a family that are chiinese. All in all I couldnt agree with you more. i grew up fed by the hand of an mechanical engineer that wouldnt buy a single product unless it was american made. And let me tell you, it ran strong. We need more of this thinking in our country. I cant even watch news anymore without wanting to shed a tear over the fact I know that this country is going nowhere. All I can do is plug along and make myself believe Im making a difference.

    Marshall
    Cam2 Automation


  11. #31
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    Default Re: machine shop rates.

    I spent quite a bit of time analyzing the cost of parts we produce to justify (feel good about) buying a new machine and honestly if varies so greatly its very hard to pinpoint a round number. I can sell time on a well used vertical machining center with a programmer/operator, insurance, floor space, electric etc for $35 an hour and make a profit. A part that takes 4 minutes on that machine only takes about 45 seconds my new 5 axis machine, but that machines cost $67 an hour with the same operator to run. So I can bid $35 an hour like the guy down the road with the 20 year old FADAL , run it on a new machine in 1/5th time and make money. I consider the reduced process time to be to my advantage.

    We sell our shop time for $45 per hour from the time I open a drawing file till the finished parts are put in a box for customer pickup.



  12. #32
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    Quote Originally Posted by panaceabeachbum View Post
    I spent quite a bit of time analyzing the cost of parts we produce to justify (feel good about) buying a new machine and honestly if varies so greatly its very hard to pinpoint a round number. I can sell time on a well used vertical machining center with a programmer/operator, insurance, floor space, electric etc for $35 an hour and make a profit. A part that takes 4 minutes on that machine only takes about 45 seconds my new 5 axis machine, but that machines cost $67 an hour with the same operator to run. So I can bid $35 an hour like the guy down the road with the 20 year old FADAL , run it on a new machine in 1/5th time and make money. I consider the reduced process time to be to my advantage.

    We sell our shop time for $45 per hour from the time I open a drawing file till the finished parts are put in a box for customer pickup.
    I had one jerk of a customer. His solution for me charging him, what he thought was unfair on an incredibly complex part, he said if I bought the new HSM modules and a 4th axis I could finish sooner and save him money. UH NO PAL! It doesn't work that way. I'm not going to spend 20,000 bucks to save you money on a $1000 part. Needless to say I don't deal with him.

    Depending on the project and PITA factor I am anywhere from $45 to $100 an hour. I do not have an "advertised" rate. If it is walk in work or someone I don't know I always go on the high side to filter out the people I know will be trouble. My good customers always get a good rate.



  13. #33
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    Default Re: machine shop rates.

    Quote Originally Posted by warrenb View Post
    I had one jerk of a customer. His solution for me charging him, what he thought was unfair on an incredibly complex part, he said if I bought the new HSM modules and a 4th axis I could finish sooner and save him money. UH NO PAL! It doesn't work that way. I'm not going to spend 20,000 bucks to save you money on a $1000 part. Needless to say I don't deal with him.

    Depending on the project and PITA factor I am anywhere from $45 to $100 an hour. I do not have an "advertised" rate. If it is walk in work or someone I don't know I always go on the high side to filter out the people I know will be trouble. My good customers always get a good rate.
    Don't you just love those customers that tell you how to run their parts? I always wonder if they know so much why aren't they running the parts themselves?



  14. #34
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    Quote Originally Posted by Dualkit View Post
    Don't you just love those customers that tell you how to run their parts? I always wonder if they know so much why aren't they running the parts themselves?
    "What do you mean you can't make the hole smaller. It's just a hole...."

    Or another favorite

    "It only took you 5 minutes to drill that hole. Why is this so much" (Because, I spent 12 hours fixturing that part, I have $50,000 worth of equipment that can drill that hole, and 20 years of experience to know how drill that hole.)



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machine shop rates.

machine shop rates.